- The Russian Ministry of Finance clarified the procedure for executing government contracts due to the VAT rate increase.
- Contracts signed before January 1, 2019, can have their price increased to account for the VAT hike.
- Law No. 44-FZ allows changes to essential contract terms for contracts signed before January 1, 2027, if unforeseen circumstances arise, subject to government approval.
- From January 1, 2026, the VAT rate is 22% for all transactions, regardless of contract date; no exceptions for ongoing contracts.
- Work stages accepted before January 1, 2026, are taxed at 20% VAT; stages accepted from January 1, 2026, are taxed at 22%. Payment in 2026 for work accepted in 2025 does not require VAT recalculation.
Source: garant.ru
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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